Intel announced last March that they were working on developing a "virtual cable provider", offering subscription TV services over broadband to Intel-powered set top boxes. Now, Bloomberg is reporting that Intel is finally close to securing deals with a number of major content providers to help launch the service. Intel's proposed service would roll up live TV offerings, online DVR funtionality, and on-demand content in a manner in which traditional cable and satellite subscription services could never match. It's not impossible to imagine that content providers might see such a service as an antidote to growing discontent with rising subscription TV rates, but it's also difficult to imagine networks such as CNN and NBC that are owned by companies that also own cable service providers rushing toward an Intel backed a la carte future.

Intel is betting it can create a more flexible service, delivered through consumers’ broadband accounts, that gives subscribers more choices over the channels they receive and offers an easier-to-use electronic programming guide, Huggers said. The service would offer live channels and on-demand programming.